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Facing the possibility of massive layoffs and a takeover by the state, fear turned to outrage at Monday night’s Scranton School Board meeting.

The first regular meeting since the state auditor general issued a scathing report on the finances and management of the district, more than 300 teachers and community members demanded answers and change.

“You shouldn’t punish the children. You shouldn’t punish the teachers. You shouldn’t punish the taxpayers,” city resident Joan Hodowanitz told school directors. “You should all hang your heads in shame.”

With a projected $25 million shortfall in the 2018 budget, anxiety over job losses and program cuts has employees scared and parents angry. The first of those cuts began Monday, as the board approved a contract with the maintenance and clerical workers union that calls for 23 layoffs, including gym and pool assistants, library clerks and hall monitors, effective July 1. The union plans to vote on the agreement Thursday.

Union President Luann Lord said the district would have eliminated the positions regardless of the contract, but her members wanted to help the district by also agreeing to a three-year wage freeze. An additional 10 jobs will be eliminated during the third year of the contract. The contract will save the district $953,000, after the district pays unemployment benefits to the laid-off employees for a year, officials said.

Directors also accepted the resignation of Jim Timlin, who has served on the board since 2015.

“I could have waited until the reorganization meeting, but personal reasons had me doing it a little bit sooner,” Timlin said Monday afternoon, prior to the meeting. “It just wraps up too much of my time when I want to travel.”

Timlin, 70, often travels to Pittsburgh on weekends to visit his daughter and granddaughter and finds it difficult to return to Scranton for Monday meetings.

“My intentions were all good,” he said. “The district is going to make a turn for the positive ... I just can’t do it anymore.”

Three directors — Mark McAndrew, Tom Schuster and Paul Duffy — voted against Timlin’s resignation in an attempt to delay any decision-making until the new directors take their seats Dec. 4. It remains unclear if the current board will have any say in appointing Timlin’s replacement. Earlier in the day, board President Bob Sheridan, who lost in the primary, said he would like to apply.

At Monday’s meeting, many speakers lamented the board’s poor financial decisions, which have helped lead to a deficit expected to reach $40 million by the end of the year.

Teachers said the blame does not fall to their salaries, but to financial mismanagement by the school board and administration.

Some teachers spoke about possible cuts to family and consumer sciences and industrial arts — two programs that state-appointed financial monitor PFM suggested that the district look to for savings.

Cheryl Scavo Spager, who teaches family and consumer sciences at South Scranton Intermediate School, said the program teaches students everything from nutrition and cooking to how to wash clothes and interview for a job.

“I’m heartbroken at the thought of students losing our valuable life skills programs,” she said. “How can you take away such a valuable resource? Our students are depending on you.”

Several speakers urged the board to sell the Administration Building on North Washington Avenue and move offices into school buildings. Other speakers suggested the formation of an ethical oversight committee or setting up a hotline for fraud, waste and abuse.

“Some of you guys are going to wear handcuffs,” said West Scranton resident Jim McGough — a statement that caused Sheridan to ask the audience to refrain from personal attacks.

In his report, state Auditor General Eugene DePasquale claimed the district budgeted recklessly, gave health insurance to nonemployees, paid unapproved rate increases to its no-bid bus contractor and provided questionable payouts to former employees.

At the end of the meeting, Sheridan defended the board’s actions and said many of the problems were inherited by current directors.

“I’m very proud of our whole board. We work very hard without any pay,” he said. “I’d like to see anyone walk a mile in our shoes.”

• Directors also approved the retirement of Joseph Brazil, chief information officer, effective Dec. 31, 2018, and rescinded the appointment of Elizabeth Krokos to chief of special education and support services. Interviews for the position continue. The board appointed Nicole A. Pizzola as a biology teacher.

• Mark McAndrew asked for a list of every entity the district does business with and hopes to put all the services out for bid.

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